Falling Short: Why Long/Short Strategies Need a More Flexible Approach

2021.03-Clough-Investment-Brief-Cover
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Traditionally, long/short managers have touted shorting as an additional lever to add alpha, and an effective equity hedge to boot. But current market dynamics beg a simple question: What if the investment environment isn’t conducive to shorting?

In this investment brief, we review some of the current market constructs that work against shorting and share how our own portfolio construction process has evolved to address them.

 

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